Thanks Bierdjb. I never heard of that before. Sorry I didn't post back to this thread. We fixed the Alerts issue, but we have no clue what 'fixed it'. We did the following:
1. We found that one of the front end servers didn't properly upgrade to MOSS 2007 SP1. We tried to upgrade with the sp1 upgrade file, but it said that it was already upgraded to SP1.
2. We called MS support and they had us modify an XML file to 'force' the upgrade and then our one front end server displayed the proper version.
Duing this 2 day venture, the Alerts started working. We asked the MS support person if there is anything that during this failed then forced upgrade that could have fixed the alerts. He wasn't sure, but did say that alerts are controlled by 1 server. He said it was possible that when we tried to run the upgrade and it failed, it could have kicked the alerts over to the other front end server and therefore started working. A few knowledgable SP friends said they never heard such a thing.
So, there you go...I will definetely look into the cache folder being gone. That was something I didn't know.
Jonathan Herschel